NYDFS FINES NATIONAL UNION INSURANCE $5.6 MILLION FOR FAILURE TO PROVIDE SUFFICIENT BENEFITS TO CERTAIN INSUREDS

NYDFS took action against another insurance firm.  According to the DFS allegations:

•   The benefits of blanket accident and health insurance policies issued to groups including institutions of higher education, day camps and childcare providers were found not bear a reasonable relationship to the premiums paid by these insureds.

•   The minimum loss ratios maintained by National Union for these policies were below statutory requirements.

•   Insureds were overcharged more than $8 million in premiums based on DFS findings, requiring rebates to affected insureds in the amount of $8,377,825

•   National Union also violated insurance law by providing reimbursement on an indemnity basis instead of an expense incurred basis